HSBC In Talks To Sell Russian Unit To Expobank: Reports

(RTTNews) - HSBC Holdings PLC (HSBA.L) is reportedly in talks to sell its Russian unit to local bank Expobank.

According to Bloomberg, citing people with the knowledge of the matter, HSBC's talks are in advanced stage, as several major banks exit the country amid Moscow's invasion of Ukraine.

HSBC exited retail banking in Russia several years ago. It currently serves corporate clients. The unit's total assets stood at 89.9 billion rubles or ($1.4 billion as of June 2021. It has 249 employees in the country.

In April, HSBC said it wasn't accepting new business or customers at its Russia unit, however, will continue its operations in the nation due to its responsibility to multinational corporate clients. The bank took a $250 million charge in the first quarter related to Russian counterparties.

Expobank, which is owned by Russian entrepreneur Igor Kim, has offices in over 50 Russian cities and covers corporate and retail banking and other financial segments.

Several of major financial companies are planning to exit or reduce their business interests in Russia since the Ukraine invasion.

France's Societe Generale sold its Rosbank unit to oligarch Vladimir Potanin, while Italy's UniCredit is exploring options for the future of its Russian business.